On January 29, 2025, Volvo Cars announced that it has signed a share purchase agreement with Northvolt AB to acquire Northvolt’s shares in NOVO Energy AB. This transaction will result in Volvo Cars taking full ownership of NOVO Energy AB, pending approval from the relevant authorities. The move marks a significant development in Volvo Cars’ involvement with NOVO Energy.
The completion of this transaction is subject to clearance from the United States Bankruptcy Court for the Southern District of Texas and the Inspectorate of Strategic Products in Sweden. Both Volvo Cars and Northvolt AB are responsible for fulfilling specific requirements set by these authorities. The deal is expected to close once all necessary conditions are satisfied and approvals are obtained.
Volvo Cars has indicated that taking full ownership of NOVO Energy is not anticipated to affect its other planned investments or cash flow goals. The company remains committed to its strategic investment plans and financial objectives. Upon completion of the transaction, there will be no outstanding claims between Volvo Cars and Northvolt AB, allowing both companies to proceed independently with their respective business activities.
In addition to the share purchase agreement, Volvo Cars and Northvolt AB have entered into a framework agreement aimed at exploring potential future collaboration. This agreement focuses particularly on supply opportunities within North America. Both companies are seeking to identify areas where they can work together in the future, potentially enhancing their capabilities and market presence in the region.
The framework agreement suggests that, despite Volvo Cars taking full ownership of NOVO Energy, it and Northvolt AB are maintaining a cooperative relationship. They are exploring ways to collaborate on future projects, which may include partnerships or supply agreements within the North American market.
This transaction and the accompanying framework agreement highlight Volvo Cars’ strategic efforts to strengthen its operations while remaining open to collaborative opportunities. The company is taking steps to solidify its position and explore new avenues for growth and partnership within the industry.
Source: Northvolt
